February 24, 2017

CAQ Snapshot: February 2017

CAQ Releases New "Video Vignettes" for Educators

Two new video vignettes from the CAQ provide insights into the types of conversations that should occur between audit team members, auditors, and preparers. In this latest set of vignettes, an audit team’s substantive testing has detected an error in a prepaid insurance account. The videos depict discussions that an audit team might have around the design of the control over the account, how it was operationalized, and why the control failed to detect the error.


A new CAQ video vignette depicts hypothetical discussion between members of an external audit team.

This is the second set of videos in a series that the CAQ is developing for audit educators. The first illustrated types of discussions between auditors and preparers around management review controls of a goodwill impairment, highlighting communications and interviewing techniques, professional skepticism, and how to navigate conversations on difficult and sensitive issues.

To help facilitate robust classroom discussion, the CAQ also provides accounting and auditing professors with a set of teaching notes for the vignettes. The registration form for the teaching notes can be found on the CAQ’s website.

CAQ’s #AuditorProud Campaign Wins Communication Innovation Award

The Public Affairs Council has awarded the CAQ its Communication Innovation Award for 2017, honoring the CAQ’s leadership role in the auditing profession’s second annual #AuditorProud social media blitz. The award recognizes outstanding communications initiatives that excel in creativity, inclusiveness, innovation, and organizational relevance.

Using the #AuditorProud hashtag, thousands of auditors from more than 100 countries took to social media on September 22, 2016 to share personal stories of why they chose a career in auditing, what they love about the profession, and what makes them proud to be an auditor. The campaign was a part of the CAQ’s broader efforts to help the auditing profession continue to attract the best and brightest.


Erica Hurtt, CAQ Senior Director of Communications, accepts the 2017 Communication Innovation award from the Public Affairs Council.

“The CAQ is pleased to accept this award on behalf of our many members and partners who helped make this year’s #AuditorProud day both a communications success and a joyous event,” said CAQ Executive Director Cindy Fornelli in a statement. “We look forward to building on #AuditorProud, which each year helps illuminate for students and others why the auditing profession is an exciting and rewarding career.”

To learn more about #AuditorProud and the CAQ's talent efforts, visit DiscoverAudit.org, as well as Discover Audit's pages on Facebook, Instagram, and Twitter.

Fornelli: What to Know Regarding Fraud Investigations and the SEC

When a company identifies or suspects the existence of fraud, what steps should management and the board of directors take? What are key factors of which to be aware? As a follow-up to a December 2016 webcast on these questions, CAQ Executive Director Cindy Fornelli has posted a companion commentary at the Global Knowledge Gateway of the International Federation of Accountants.

"Dealing with fraud—particularly if it entails an investigation by government authorities—is usually not a walk in the park," Fornelli writes. To address this challenge, she sets out key points made by the webcast panelists, including having awareness of government cooperation programs, knowing the right time to self-report potential fraud, getting the board engaged, and communicating robustly.

"Profession in Focus" Welcomes Ken Bertsch, Timothy Hedley

The CAQ has added two new episodes to its "Profession in Focus" series. The first episode features Ken Bertsch, Executive Director of the Council of Institutional Investors. Bertsch reflects on the strong state of corporate governance, his organization's top priorities, the use of non-GAAP measures, and why the Sarbanes-Oxley Act of 2002 has been "very successful."

In a subsequent episode, KPMG LLP Partner Timothy Hedley, Global Lead for the firm's Fraud Risk Management service offerings, discusses the keys to robust fraud deterrence and detection, the importance of ethical corporate culture, and the ever-evolving role of technology and data analytics in anti-fraud efforts. "The forensic professional of the future is going to be a data scientist," he says.

Join the CAQ at These Upcoming Events

CII Winter Conference
The CAQ is pleased to continue its partnership with the Council of Institutional Investors as a sponsor of its 2017 Winter Conference.
February 27-March 1, 2017; Washington, DC (Website)

ICGN Conference
Join the CAQ at ICGN’s first event of 2017, where Catherine Nance, CAQ Senior Director of Professional Practice, will moderate a panel discussion on the topic of “Continuing the Conversation on Non-GAAP.” Register now!
March 1-2, 2017; Washington, DC (Website)

FEI 2017 Committee on Corporate Reporting Meeting
We look forward to seeing our financial executive colleagues at FEI’s Committee on Corporate Reporting Meeting where Cindy Fornelli will speak on the topic of “Discussion on SEC Enforcements/SEC Cooperation Program” on Thursday, March 9.
March 8-9, 2017; Coronado, CA (Website)

2017 REITWise Conference
The CAQ is pleased to participate in REITWise 2017, NAREIT’s Law, Accounting & Finance Conference, where Catherine Nance will join Howard Garfield, SVP-Planning, CAO, Treasurer & Assistant Secretary at Monogram Residential Trust, and Jan Herringer, Partner at BDO USA, LLP on a panel moderated by Merryl Werber, SVP-Financial Reporting with Kilroy Realty Corporation, during the Concurrent Session on PCAOB Issues.
March 22-24, 2017; La Quinta, CA (Website)